Korean loan margins inch ever lower

Woori Bank''s new $200 million loan offers an incredibly low margin of only 10bp over Libor.

ABN AMRO, Barclays Capital and Commerzbank have been mandated to arrange a $200 million one-year deal for Woori in what will mark a debut borrowing for the Korean banking group. Pricing on the deal reflects the incredible shrinkage which has been seen in loan margins this year and carries a headline spread of 10bp over six-month Libor and an all-in of 19bp.

Many bankers describe the pricing as ludicrous and believe that it may end...